Who is typically obligated to sell shares when writing a put option?

When writing a put option, the seller of the put option is obligated to buy the underlying shares at the specified strike price if the buyer of the put option decides to exercise their right. This contractual obligation arises because the seller of the put collects a premium from the buyer for taking on this risk. If the stock price falls below the strike price at expiration, the buyer will likely exercise the option, compelling the seller to purchase the shares at that agreed-upon price, regardless of the market value at the time.

The other options are not involved in this particular dynamic. The buyer of the put option holds the right to sell the shares but is not obligated to do so. The stockholder may own the shares but plays no direct role in the put option transaction. Similarly, the board of directors is not related to individual option contracts, as their responsibilities pertain to broader management and governance of the company rather than individual securities transactions.